Companies that forgo share buybacks to get preferences in CHIPS Act

 

Commerce Secretary Gina Raimondo said the Biden Administration would give preferential treatment to companies who voluntarily agree to forgo stock buybacks for five years when it begins to give out the $52B provided by the CHIPS and Science Act. The CHIPS Act, signed into law by President Biden last year, aims to boost the development and production of semiconductor chips in the U.S. and reduce the U.S.’s dependence on Asia for the technology. Raimondo said share repurchases are one of the factors being considered as part of a $39B manufacturing subsidy program. The agency will also consider a company’s recruitment and training strategies and childcare benefits for employees, among other criteria. The CHIPS Act provides a 25% investment tax credit for building chip plants valued at about $24B.